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moneypenny02
Posts: 83
Registered: ‎04-27-2012
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First steps -- Can I get a mortgage? If so, when?!?!

[ Edited ]

Hello,

My husband and I are interesting in purchasing a house (actually a duplex) for our first home in the near future.  What we are not sure of yet is exactly how near that time may be.  I have already read a few books on homebuying and checked out various forums, and before we start looking in earnest, I reallyw ant to find out if we have all of our ducks in a row to obtain a mortgage and if so, for what amount.  If not, I want to know how much longer we will need to wait and what, if anything, we must do.  I have reached out to one lender who works with my employer to provide private banking services for its employees, but he has not provided concrete answers for these questions.  We have also not found a broker or realtor yet because we are not sure exactly what area in our city we will be looking in (in part b/c we don't know how much we will be able to get for a loan yet), and we want a realtor that is familiar with that area especially. 

 

I don't want my credit pulled and I dont want to do something that is similar to committing to a realtor or broker or lender or anything else.  I just want to know when & for how much we will be able to get a mortgage -- even with the knowledge that it can't be guaranteed at this point because I have not provided info to verify the information I would be providing the lender.  What is the best way for me to approach banks/lenders and who should I be approaching at this point for this type of information?    I know that we will likely need an FHA loan.  I am lso including the info below in case that helps.  Thank you!!

 

  • Credit.  No negatives, and score above 800 when I last checked about 4 months ago.
  • Income.  I graduated school in may 2010.  I started working at my first job in that field in Aug 2011 (that was the set start date, but the job was obtained over a year in advance) & the salary was about $62,000.  That was a one-year set term job, which ended in Aug. 2012.  In October 2012 I started working at my next job in that field (again, a set start date) where I wil be making $170,000/yr.  The work situation/ work history is the main issue that is making me unsure whether or not we will be able to obtain a mortgage, and if so, when & for how much (i.e. how much of my current salary will they count)
  • Source of income.  Salaried position.
  • Monthly debt payments.  appx. $1,100 in monthly debt for student loans. No consumer debt or car payments, etc
  • Employment (for those who are employed).  Graduated from grad school in May 2011, one year in one position related to job (similar to fellowship- one year set term), now have less than a month on my second job. 
  • Assets/Reserves.  Will have at least $35,000 for downpayment -- the longer we have to wait/ search this will rise.
  • Location.   Los Angeles, CA
  • Property.  Multi-family -- likely a duplex
  • Value.  We are still looking, but would probably top out at $800,000
  • Occupancy.  We would live in one unit, rent the other
  • Transaction Type.  Purchase / first time home-buyer.
New Contributor
moneypenny02
Posts: 83
Registered: ‎04-27-2012
0

Re: First steps -- figuring out if, when, and how much mortgage we can get

Also, on a related topic -- can anyone recommend a good book on the mortgage process?  I've heard a lot about people being more successful when they made detailed inquiries showing that they knew the details of the process so I want to make sure that we are informed buyers when its time to settle on a particular loan.

 

Thank you!

Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011
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Re: First steps -- figuring out if, when, and how much mortgage we can get

I'm sure you will be approved - your job is fine - you just would need at least two months of check stubs at your new job.

You need to find a DTI calculator online to find out how much you can borrow. It depends on your income.

You dont have to get in bed with a lender to call and have a sit down, they wouldn't have to run your credit to do it - you could take your reports in with you if you have them. That's a good way to find a lender anyway - many people sit down and interview different lenders, others (like me) got referred by the realtor, etc etc.
STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
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New Contributor
moneypenny02
Posts: 83
Registered: ‎04-27-2012
0

Re: First steps -- figuring out if, when, and how much mortgage we can get

Thanks for the helpful info. 

 

I have used the calculators and using my income & debt alone it says that I am eligible for a loan up to the amount that we are looking into.  I just wasn't sure whether they would count my entire current salary, or if they would average it with my prior year's salary, or -- as the private banking consultant said -- would require that I have the full 2 years of work history, and even then may still take the average over the past two years rather than my current salary.

 

Added to the mix is my husband, who has a much shorter work history and higehr debts.  I was thinking of trying to get the loan on my own, but I think his debts will be counted no matter what since we are in a community property state (although the majority of the debt is before we got married, so I should not be liable for them in any case).  I am not sure how they will count his income or his debts. 

 

I think a sit-down may be necessary, but I feel slightly uncomfortable taking up someone's time if I am not willing to commit to them -- and I don't know how much they will expect me to do so -- particularly now, when all I am really looking for is to know the numbers so that we can figure exactly how we should be looking & create a timeline if necessary.  If the "shopping" is a normal part of the process I will feel a bit better about it. 

Moderator Emeritus
webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: First steps -- figuring out if, when, and how much mortgage we can get

Shopping for a lender and interviewing lenders is normal! I shopped for lenders in may June and July. I interviewed 9 before I committed. This was.for a Fha streamline refinance for a duplex that I purchased using Fha back in April 2008. I converted the duplex to strictly an investment property in 2011 and purchased a new principle residence in 2012. The duplex has proved to be a true cash cow; as the proceeds from rent will be enough to pay for the duplex mortgage as well as my principle residence mortgage after I finish the refinance. Finding a lender who would do an Fha streamline refinance on an investment multifamily home was a challenge. 3/9 wouldn't touch it. I picked my lender due to her knowledge of the Fha program. She specializes in Fha loans; and she is a broker. Furthermore I talked to her back and forth with my questions from may.to July and she didn't pressure me or pull my credit until I was ready... as I got married in late may and took a nice honeymoon and wanted to bring my utilization down prior to applying. If you would like her contact info feel free to PM me.

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: First steps -- figuring out if, when, and how much mortgage we can get

The point of my story is that interviewing lenders is normal so don't feel guilty. Its like test driving a car only to find that the motor is sluggish and.the steering is unresponsive despite how cool the car looks on the outside.

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webhopper
Posts: 7,225
Registered: ‎09-16-2011
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Re: First steps -- figuring out if, when, and how much mortgage we can get

moneypenny:  Don't forget that with FHA multifamily properties,  you are allowed to include 75% of the rent from the side you do not intend to occupy as income for yourself. so your income will increase as a result of this calculation   Normal monthly income you earn now + (rent from one side of the propery X 0.75)


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